AMD to go fab-less within two weeks, says analyst

AMD has talked vaguely about a manufacturing spin-off for more than a year now. Company chairman Hector Ruiz told analysts in July that he hopes to complete a deal before the end of 2008. Ruiz stepped down as CEO and was instructed by his board to concentrate his efforts on completing the deal.

Lau reported Wednesday that AMD?s two chip factories in Dresden, Germany may be spun off into a separate company that makes chips for AMD and other customers.

Lau also wrote that a Middle East investment group may ?acquire a large position in the new foundry and fund its purchase with cash.?

That cash infusion would likely be used by AMD to pay down its debt, which totals more than $5 billion.